Tuesday, June 03, 2008

Why is Gasoline so High?

Ariel Cohen, Ph.D, Senior Research Fellow in International Energy Security at The Heritage Foundation and the author of The Real World, a weekly column published in The Middle East Times.

"If we will not endure a king as a political power we should not endure a king over the production, transportation, and sale of any of the necessaries of life."—John Sherman

Supply and Demand, the weak dollar, just why are gas prices skyrocketing are there not market forces and market controls that would prevent the devastation of the American economy and the devaluation of the dollar? Or is that just how the supply and demand ball bounces? Before you hear more of that supply and demand mumbo jumbo about it’s all because of a weak dollar you should ask yourself then why is the dollar weak?
From Russia to Iran to Venezuela, America's adversaries are splurging on oil windfalls, while programs directed against Uncle Sam and his allies are funded by petroleum revenues. Big bucks are allowing the oil sultans and dictators to intimidate US allies, buy politicians and academics, and purchase election outcomes.

Oil prices are going up partly because of supply and speculation - but also because these countries can decide to punish the US or limit our influence, particularly when they disagree with policies toward Iraq and Israel.
--Ariel Cohen

The inconvenient truth is the war in Iraq and the war on terrorism has always been about a hidden war on the United States economy. Whether you like it or not, whether you realize it or not the United States of America is in the economic fight of its life because the global economy is attempting to supercede the U.S. economy as the preeminent world economy and everything is connected.

Global warming and carbon dioxide reduction, food shortages, exorbitant gasoline prices are all a part of a plan to damage the U.S. economy. Corporations like big oil have handed over economic control of the world through the instrument of free trade to Russia and OPEC nations who are slowly bleeding the United States economic life dry. (see article)

Part of the reason they can do this is that governments of the Oil Producing and Exporting Countries (OPEC) cartel, and the non-cartel producers like Russia, make sure that international oil companies do not own reserves in the ground. Exxon, for instance, spent only 4 percent of its exploration budget in the Middle East last year - local governments do not allow Western companies to take control of their own destiny.—Ariel Cohen

In 2002 former President William Jefferson Clinton foretold that this day would come before an audience in Australia speaking at the 2002 World Congress on the Peaceful Reunification of China and World Peace in Sydney, Clinton opined:

[T]his "brief moment in history" when the US had pre-eminent military, economic and political power, would not last.

"This is just a period, a few decades this will last, and I think that all of us who are Americans should think about this and ask ourselves how do we wish this moment to be judged 50 years from now,"
Bill Clinton

It has even become clear to even the ipod wearing entertainment distracted American that something is terribly wrong with our economy. Somehow the people whom we have entrusted to make decisions about our economy, government and private, have failed us.

They have allowed the United States to be strapped with a multi-billion dollar trade deficit to countries that hate us. They have allowed the United States to run up a staggering National debt which weakens the dollar and they have lost control of the markets which commodities, futures and stocks are traded upon. U.S. markets are now superceded by a Global market that foreign influences control.

There is no corporate exit plan to free America from the addiction of foreign oil which they created. Yet we denigrated an American President for having no exit plan out of a war that corporations caused by the wealth that they funneled into the Middle East by their oil exploits.

If corporations had not began using the Middle East as the oil center of the world Islam would not be funding world-wide terrorism with their oil profits. They would have remain powerless tribes running around in the desert cutting one another’s throats rather than buying nuclear facilities now which will allow them to wage an Islam threat against the world.

Gas prices are high because oil producing nations are taking advantage of the power that U.S. companies gave them when those oil companies thought it more profitable to cap the oil wells in American and import oil from foreign countries which cut manufacturing cost and increasing profits for those companies.

In summary, the trade deficit, the National debt and staggering Gas prices are all the result of short-sighted profit driven U.S. corporations that continue to sell out America for the sake of their bottom lines.

What’s next? U.S. investment corporations are already pressuring Congress to get into the foreign controlled cap and trade Carbon markets. Congress is debating this right now as you read.(see here)

Gas is high because Corporations can make record profits on gas as foreign governments bleed the U.S. economy dry. Supply and demand? No it’s more like supply and speculation and you and I are witnessing what Bill Clinton speculated about in 2002, the decline of America’s military, economy and political power.

Welcome to the post-American world and higher food, goods and gas prices, the 21st Century weapons of mass destruction.


  1. This comment has been removed by the author.

  2. HNC,
    The government’s primary responsibility is to protect the people from enemies both foreign and domestic.

    That means foreign interest that are attempting to wreak the U.S. economy or their U.S. business counterparts who are simply attempting to profit by any means necessary.

    When business exploits the U.S. economy by outsourcing middleclass jobs, in sourcing illegal aliens that put a strain on the U.S. economic infrastructure, making bad loans causing a global credit crisis and otherwise making America weak, the government should by all means step in to protect the American people from these predatory business practices.

    In the last 20 or so years we have seen big business exploit our government and consumers and this should be prevented.

    Government many be responsible for stopping drilling in Anwar as you suggest, I would venture to guess that further scrutiny probably would reveal that government was merely the arm by which big business prevented the drilling.

    If you are correct and Bill Clinton was instrumental in preventing drilling in Anwar I would wager that he was doing the bidding of some extra-government entity that was working behind the scenes.

    Therefore it is much too simplistic to say that government needs to get out of the way.
    Government needs to do its job and protect the American people.

    If that means allow drilling in Anwar then so be it, If that means preventing Corporate interest from further exploiting the American economy then government should do that too!

    But we can ill afford to restrain that which was meant to protect us, our government, when Corporate interest, Iran, Russia, Venezuela and Europe has declared economic jihad on the U.S. economy!

    Think about it, I believe you would agree.

  3. HNC,
    BTW Clinton did veto drilling in ANWR in 1996